I've owned both. I used to own an Arsenal SA M-7S and SA M-7SF. Currently, I only have a VEPR (actually a KTR-03V)
If I wanted a traditional looking AK, I'd get the Arsenal.
If I didn't care about my AK being traditional looking, or I wanted to save money, I'd get the VEPR.
They both have their ups and down. The VEPR is substantially cheaper and it comes standard with a scope rail. An Arsenal with a scope rail will run over $700, whereas you can get a VEPR for less than $500. The VEPR is a little front-heavy, and the barrel isn't threaded.
The Arsenals that are currently available have the 24mm threaded FSB with flash hider, which I don't care for. It add almost 3 inches of length for no real benefit. I'd prefer 14x1 threads with a birdcage flash hider, which is more than sufficient for 7.62x39. I hate brakes. If the Arsenal SA M-7R (no-ban with 14x1 threads) ever becomes available, I'll buy one on the spot.
The best AK out there is a Valmet or Galil, BTW.
ETA supposedly the VEPR is more accurate than the Arsenals. I don't really care one way or the other, the Arsenals I had, my KTR-03V, and my Valmet 62 all shoot minute-of-badguy, which is good enough for me. I don't get wound up about 1" groups off the bench with a fighting rifle.
Quoted: Dont have experience with either feed back I here Bulgarians are best. Accessories and Mods options are limited with VEPR.
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Not sure what kind of "mods" you think you can do to a SA M-7
Because of the tang design changing the stock is possible, but impractical. Look at the ACE stock for milled AKs, it has a 1.5" block sticking out the back of the receiver. For all practical purposes, you're stuck with a fixed stock. I guess you can switch it out between commie length and "NATO" length. The Ultimak handguard fits the VEPR if that's your thing. Can't change the VEPR grip, but it's vastly superior to the regular AK grip anyway. Other than those, what kind of "mods" would you want to do to an AK???